The Effect of Management Leadership Style on Marketing Orientation,Service Quality,and Financial Results: A Cross-Cultural Study

ABSTRACT

The significance of customer and market orientation has been closely examined in the marketing and management literature. Recent research has focused on how to assess the antecedents of market orientation and the effect of market orientation on business performance via various mediating and situational variables. The present study investigates the impact of management leadership style on market orientation and collaboration between the management and the employees. Their effects on business performance are also scrutinized. The study was conducted on a sample of managers in Taiwan and the United States. A cross-country comparison yields many interesting findings and important managerial implications, as well as future research directions.     

Performance or learning goal orientation: Implications for business performance

An organization's long-term effectiveness and efficiency reflect its learning goal or performance goal orientation. Goal orientation concepts originate in psychology of achievement motivation theory. Goal orientations drive the development and deployment of organizational capabilities, such as market orientation and innovativeness to achieve organizational performance outcomes. Extant research pays little attention to whether or not industry type (services or manufacturing) operates as a significant moderating factor in the relationships among an organization's capabilities, goal orientation, and performance outcomes. This study addresses this gap. The study results indicate a significant moderating effect of industry type on relationship between goal orientation and performance but not between goal orientation and either market orientation or innovativeness. Goal orientation appears to be more important for service industries than for manufacturing.     

Market Orientation and Organizational Performance in the Nonprofit Context: Exploring Both Concepts and the Relationship Between Them

ABSTRACT

The purpose of this paper is to explore the relationship between the concepts market orientation and organizational performance for nonprofit organizations. To understand the nature of this link in the nonprofit context, the authors will discuss and elaborate on the applicability of both concepts to nonprofits. They will develop multidimensional notions of “societal orientation” and “nonprofit organizational performance,” which fit the specific operating environment of nonprofit organizations engaged in the provision of health and social services. The authors also propose a conceptual framework that relates both notions and present the main underlying propositions. They conclude by suggesting items to empirically measure both constructs and venues for future research.     

The moderating effect of brand orientation on inter-firm market orientation and performance

Abstract

While prior research has shown that market and brand orientation are key contributors to successful business performance, research to date has not fully explored how inter firm collaboration for these two key orientations can enhance business performance. The purpose of the paper is to investigate the relationship between inter-firm market and performance; to test for the moderating role of brand orientation in that relationship. A total of 169 completed pairs of surveys were collected of small and medium enterprises operating internationally in a variety of industries in Switzerland. The results show that inter-firm market and brand orientation are two antecedents of marketing and financial performance. The impact of inter-firm market on marketing and financial performance is significant when the brand orientation is favorable. This study extends previous research by examining the moderating role of brand orientation on inter firm market orientation, which is important, especially for firms wanting to increase their brand reputation by entering into partnerships with other firms. Further research is indicated, to identify the key moderators of the driving force of inter-firm market in relation to business performance and the reason why maintaining a strong brand presence is important in the international marketplace.     

A review and evaluation of market orientation research in an emerging African economy

ABSTRACT

The paper synthesizes the level of strategic market orientation of firms operating in the emerging economy of Ghana over the last two decades. It dwells on market orientation studies in general, and the banking industry and exporting firms in particular. Market orientation has a positive relationship with performance for both foreign and domestic firms across the many studies. Foreign firms in general appear more market oriented due to experience effect and relationship with parent organizations. As competition heats up in the banking industry, organizations need to be more innovative to sustain their performance or to survive. For exporting firms, there is the need for decreased formalization and increased decentralization so as to enhance the levels of market orientation. The paper develops propositions to guide organizations in applying marketing principles in the running of their business activities. Further, the paper provides an update on the literature with suggestions for future research in the theory and practice of strategic market orientation in the context of the study.     

Relating strategic market orientation and market performance: role of customer value types

A service provider achieves competitive advantage by configuring appropriate strategic orientation and customer value type. This paper addresses three important issues: (i) which customer value type (economical, relational or technical) is important for bank customers? (ii) which strategic market orientation (customer or competitor) helps in achieving the desired value type? and (iii) which value type significantly predicts market performance? We propose that a strategic market orientation pursued by a firm shall influence the customer value it intends to offer so as to maximize the market performance. Using data collected from 538 bank customers, this study reveals that when there is a perfect match between strategic market orientation and value being perceived by its customers, a firm shall achieve strategy-value fit and realize optimal market outcomes in the form of customer satisfaction, acquisition, retention, cross-selling, and up-selling. Furthermore, a bank shall realize maximum level of market performance if it pursues both customer and competitor orientation and endeavors to deliver technical/functional value to its target customers. The paper concludes with managerial implications and future research directions.     

Understanding voter orientation in the context of political market orientation: is the political customer king?

Abstract

This article develops a conceptual framework and measurement model of political market orientation (PMO). The relationships between different behavioural aspects of PMO and the attitudinal influences of such behaviour are analysed, and the study includes structural equation modelling to test several hypotheses. While the results show that political parties focus on several different aspects of market-oriented behaviour, especially using an internal and societal orientation as cultural antecedents, a more surprising result is the inconclusive effect of a voter orientation on PMO. This lends support to the argument of ‘looking beyond the customer’ in political marketing research and practice. The article discusses the findings in the context of the existing literature on political marketing and commercial market orientation.     

Effect of Customers' and Suppliers' Perceptions of the Market Orientation of Manufacturing Firms on Channel Relationships and Financial Performance

ABSTRACT

This study is designed to investigate the effect of customers' and suppliers' perceptions of the market orientation of manufacturing firms on customers' and suppliers' trust in, cooperative norms in, and satisfaction with the relationship with the manufacturing firm. The findings from a sample of 72 matched sets of suppliers, manufacturing firms and customers in industrial channels in the Netherlands reveal that the perceived market orientation of manufacturing firms engaged in channel partnerships has a positive influence on customers' and suppliers' levels of trust in, cooperative norms in, and satisfaction with the relationship. This study further investigates the effect of the customers' and suppliers' trust in, cooperative norms in, and satisfaction with the relationship on the financial performance of the manufacturing firm. The results reveal that customers' and suppliers' cooperative norms in the relationship positively influence the manufacturing firm's financial performance. Customer's and supplier's trust in and satisfaction with the relationship have no effect on the manufacturing firm's financial performance.     

Market Orientation: An Iterative Process of Customer and Market Engagement

ABSTRACT

Research Purpose. The objective of this research was to examine market orientation in organisations that deliver manufacturing-based services to both client organisations and their customers.

Research Approach. The case study research method employed three data collection methods: in-depth, semi-structured interviews, document analysis and physical artefact analysis. Embedded study units comprising groups of different stakeholders with distinctly different perspectives provided a basis for replication logic to enhance validity of the findings.

Findings. The research revealed that a firm's transition toward a market-oriented state is progressive. At a given point in time, a firm may be adjusting to its markets intuitively or cognitively; market responsiveness may be occurring in specific pockets of the firm, or as an enterprise-wide strategy; and some of the conditions specified may be met, some may be partly met and others may remain to be addressed in the future. A specific customer focus was important to the conceptualisation of market orientation in the case organisation.

Research Implications. Key implications of the research are as follows:

• In conceptualising market orientation as a process as opposed to an ideal state, important issues of structural and policy alignment and senior executive vision and drive are revealed;

• in addition to customer and competitor orientations and intra-organisational co-ordination, other dimensions of a market orientation revealed in the research context are a customer focus and a new knowledge orientation; and

• both inter- and intra-organisational co-ordination facilitate the development of market driven and market driving customer value.

Practical Implications. While the senior executives were aware of the significant performance benefits to be achieved through a national, market-oriented vision, the lack of a co-ordinated plan to achieve cultural change resulted in incremental achievements towards the vision. One key factor inhibiting the envisioned cultural change was the power base of those within the organisation who perceived that a national, market focus would eliminate local autonomy. Specific policy was required to align rewards with required behavioural change.

Contribution. This research provides a unique perspective of market orientation as process of organisational development directed towards aligning the organisation with its served markets. Intervention strategies and incremental changes attempted to achieve a national market perspective, highlight the importance of aligning structure, human resource management strategy, top management commitment and leadership drive in achieving such a cultural change.     

Market Orientation in Vertical Business Networks

Abstract

This research addresses three questions: (1) Why are some business network firms more market orientated than others? (2) What effect does the environmental uncertainty have on the network performance impact of market orientation activities performed by a network firm? (3) Does network embeddedness influence the effectiveness of a firm's market orientation activities? The findings from a study on a vertical grocery network suggest that the performance impact of market orientation activities depends on the network identity of the network firm. Network embeddedness of a network firm is found to enhance this performance link. Finally, uncertain market environments favor down-stream allocation of market orientation activities in our sample.     

Barriers to Increased Market-Oriented Activity: What the Literature Suggests

Most research on market orientation has dealt with assessing how market orientation behaviour is related to business performance. This work has established an intense market-oriented activity as significantly and positively related to business performance under most circumstances. In a maturing field of research and practice the question on how to design programs for building market orientation is about to be answered. This branch looks deeper into the nature of market orientation and into designing and managing the increase of market orientation. However, the question on why marketing and related activities still seem to attract relatively few resources is not answered by supplying another checklist or package of facilitators. Based on published conceptual writings and empirical studies this article makes an account of what the intra-organizational barriers may be to increased market-oriented activity. A framework of six generic domains is suggested: Organizational structure, human resource management, market-oriented activity competence, psychological climate, managers' personality characteristics, and individually held beliefs. A model is suggested interrelating the domains.     

Customer Orientation in Chinese Industrial Firms and Global Marketing Implications

Abstract

The study focuses on the moderating role of environmental context (demand unpredictability and technological turbulence) and technological context (production technology routineness and product complexity) on the relationship of customer orientation with market performance relative to the industry in Chinese state-owned industrial firms. The results show significant moderating effects of technological turbulence and production technology routineness: the greater the technological turbulence and the more routine the production technology, the stronger the customer orientation-market performance relative to the industry relationship. The results also show that market performance relative to the industry is positively affected by customer orientation, but inversely affected by demand unpredictability. The findings have implications for global marketing as well as for theory development.     

市场导向、组织学习创新及组织绩效:基于珠江三角洲企业的实证研究

The purpose of this paper is to examine the relationships among market orientation, learning orientation, organizational innovation and organizational performance through a structural equation modeling approach. This study uses a sample of 143 companies in the Pearl River Delta region of China. Results show that (1) market orientation has no positive direct impact on organizational performance; (2) market orientation has a direct impact on learning orientation; (3) learning orientation has a direct impact on administrative and technical innovation; (4) market orientation has a direct impact on organizational innovation by learning orientation; (5) administrative innovation has a positive direct impact on organizational performance while technical innovation does not impact on organizational performance directly; (6) technical innovation has a positive impact on administrative innovation; (7) learning orientation has an indirect impact on organizational performance through influencing organizational innovation; (8) market orientation has impact on learning orientation, which has an impact on organizational innovation, which in turn has an impact on organizational performance. Managerial implications are discussed, along with suggestions for further research. Translated from Guanli Shijie 管理世界 (Management World), 2006, (2): 80–94, 143     

Investigating the Moderating Effects of Perceived Technological Change on Sales Force Acceptance

ABSTRACT

Purpose: Prior literature has shown that the acceptance of new technologies can improve the long-term performance of sales forces and firms. However, new technologies are likely to introduce obstacles to acceptance, especially for those technologies that represent a massive change for the user. Sales force members who drastically change their work processes in order to integrate a technology sacrifice both time and effort and may be distracted from their primary goals (e.g. hitting deadlines or sales goals). Thus, we investigate how perceived technological change can negatively moderate individual motives to accept a new technology. Furthermore, we analyze how managerial support can help overcome the acceptance issues caused by perceived technological change.

Methodology/approach: Data for this study was collected from 163 sales force members via an online survey. Respondent data was collected using a private market research firm that provides access to online panels. We utilize structural equation modeling for factor analysis and ordinary least squares (OLS) regression for testing the hypotheses.

Findings: We find that perceived technological change negatively moderates the influence of individual goal orientation on to acceptance of new technology. We also find that managerial support, as opposed to team goal commitment, will positively moderate an individual’s goal orientation onto acceptance of new technology. This suggests that managerial support is necessary in order to encourage acceptance of technologies that present drastic change for the end user. Post-hoc analysis takes a deeper look into potential curvilinear effects, a three-way interaction, and differences among categories of technologies. This analysis reveals that the negative influence of perceived technological change specifically affects the acceptance of behavioral-based technologies, as opposed to outcome-based technologies, thus necessitating the moderating influence of managerial support.

Contribution: This study demonstrates the acceptance issues presented by technologies associated with drastic perceived technological change. This article identifies and suggests how to more appropriately enhance acceptance of technologies that introduce drastic changes by sales force employees, thus enhancing potential long-term organizational performance.     

Explications of political market orientation and political brand orientation using the resource-based view of the political party

Abstract

This paper adopts the resource-based view of the firm as a platform for an examination of three important political party capabilities: proactive political market orientation, responsive political market orientation, and political brand orientation. We develop a theoretical argument outlining the importance of the complementarity between these capabilities. The approach taken illustrates the links between political market orientation, using what we label as responsive political market orientation, proactive political market orientation, and political brand orientation by building on the marketing literature. We suggest that our treatment of political market orientation is important in helping to understand better its role within the resource-based view of the party. Further, it also aides in understanding political market orientation and branding in political marketing by parties within the context of competitive strategies and electoral performance.     

Strategic orientation and new product performance: The roles of technological capability

Although prior research has examined the linkage between strategic orientation and new product performance, existing empirical evidence suggests exploration of the effects of a firm's internal factors on this linkage is required. This study aims to fill the marketing literature gap by addressing how technological capability moderates the strategic orientation‐new product performance relationship. This study measures new product performance as a two‐dimensional construct to avoid the oversimplified bias. Research hypotheses are tested using a sample of 121 information system product projects and a hierarchical regression approach is utilized. Results show that (a) technological capability strengthens the market orientation‐performance relationship and (b) technological capability affects the financial performance effects of market and technology orientations via market performance. Copyright © 2014 ASAC. Published by John Wiley & Sons, Ltd.     

Market orientation: Review, refinement, and roadmap

Over the past ten years, significant progress has been made in the market orientation area. Scholarly attention has focused on the definition, measurement, and impact of a market orientation. Attention has also focused on organizational drivers of market orientation and its enhancement. Despite progress, several research challenges remain and rich opportunities exist for further work in the area. This paper critically reviews the state-of-the-art and offers a roadmap for future work in the area. The review primarily focuses on (1) the meaning of market orientation, (2) its relationship with several emerging topics/themes in the literature (e.g., market information processing, organizational learning, knowledge use, industry foresight and driving markets), (3) the quality of market-oriented behaviors, (4) impact of market orientation, and (5) issues in enhancing market orientation. We conclude with a conceptual synthesis and methodological suggestions.     

Exploring the Role of Product Development Capability for Transforming Marketing Intelligence into Firm Performance

ABSTRACT

Purpose: This study examines the role of product development capability for transforming marketing intelligence activities into firm performance on industrial markets.

Methodology/Approach: The authors apply structural equation modeling to analyze survey data from 342 industrial manufacturing companies.

Findings: Results reveal that sales integration and holistic macroeconomic view are particularly important features of the marketing intelligence capability on industrial markets to gain additional insights in order to develop products successfully. Results also reveal that product development capability transforms the marketing intelligence activities into firm performance on industrial markets.

Research Implications: This study offers new insights on marketing theory by extending and concretizing the concept of market orientation to a broader concept of the marketing intelligence capability for industrial markets. Further, this research reveals that the product development capability serves as a mediator to business performance.

Practical Implications: This study’s systematic and tangible outline of the dimensions of marketing intelligence and its link to the product development capability helps firms to better understand how to capitalize on market orientation’s potential values.

Originality/Value/Contribution: This research (a) reveals the relevant dimensions of marketing intelligence on industrial markets and (b) shows how the product development capability tranforms marketing intelligence activities into firm performance on industrial markets.     

The Market Orientation of Internet Support Companies

ABSTRACT

Several studies have expanded the work by Jaworski and Kohli (1993) by using their market orientation framework model and applying it to a variety of industries. The results of recent studies have uncovered moderate to strong relationships between the concepts of market orientation and organizational performance. Although there is a large body of research on the topic of market orientation, there is a gap pertaining to market orientation across organizations that comprise fast-paced environments such as those that exist within the Internet commerce environment. This study explores market orientation in the context of Web Hosting and Internet service providers to understand the impact market orientation can have on new and emerging industries. The study results indicate that market orientation is positively related to performance. Implications for theory construction and managerial practice are discussed.     

Re-examining the deployment of market orientation in the public leisure sector

Abstract

This paper examines the moderating effects of market orientation's intelligence generation and dissemination components on the response–performance relationship. We offer valuable insight into the application of, and subsequent returns to, market orientation in the public leisure sector, thereby helping to broaden the appeal, relevance, and usefulness of this important marketing theory to other contexts. The research involved a national survey questionnaire to 1060 public leisure managers of local government leisure facilities in England. Empirical testing through structural equation modelling revealed two important findings. First, intelligence generation efforts of the organisation can in part affect the performance returns to an organisation from its responsiveness to market intelligence. Second, intelligence generation coupled with organisation-wide dissemination of intelligence can have a destructive impact on the response–performance relationship, demonstrated by a negative significant moderating impact on this relationship. This paper provides an alternative explanation to the deployment of market orientation as a means to create value and an explanation that transcends its current linear portrayal in public-service delivery.